BOSS Advisors PLC

The last year has brought a whirlwind of tax changes, credits, and COVID relief.  Here’s what you need to know about your estimated tax requirements:

• WHAT? 

• Estimated tax payments are required if you have a tax liability of $1,000 or more that is not paid through payroll withholdings.

• If you wait to pay tax due until your tax return is due, you’ll have to pay penalties in addition to the tax due.

• WHEN?  Estimated tax due dates:

• HOW TO PAY?  You also have a couple of payment options:

• Payroll:

  • If you are an employee of your company (e.g., S-Corp owners), and you use Gusto or another payroll system, you can pay your federal and state income taxes through additional tax withholdings instead of making estimated tax payments manually.

• Online:

  • IRS: https://www.irs.gov/payments 

    • Pay by Bank Account (you’ll be charged a fee to pay by credit card)

    • Reason for Payment: Estimated Tax

    • Apply payment to: 1040ES

    • Tax period for payment: 2021

    • Fill out the rest of the info…

  • AZ: https://www.aztaxes.gov/Home/PaymentIndividual/ 

    • Payment type: 140-ES

    • Filing status: Choose the status that matches your tax return

    • Fill out the remaining information

  • Other state websites: https://taxpayne.com/resources/forms-documents-and-links

• EFTPS:

  • If you have an EFTPS account, you can pay electronically.  Be sure to initiate payment at least one day in advance of the due date.

• Vouchers:

  • You can pay by check if needed.  Considering the current IRS backlog, we don’t recommend this.  https://www.irs.gov/forms-pubs/about-form-1040-es